Cross-Docking
As retailers see increased store traffic on nights and weekends, smaller
on-site inventory storage capacity, and greater competition from e-commerce and
online retailers, more are viewing cross-docking as a strategic imperative.
Cross-docking
has been around for generations. Yet, now more than ever, retailers are moving
goods and products from the receiving dock directly to the shipping dock as a
more efficient way to bridge “the final mile.”
Consider
these five reasons when exploring whether your retail operation can benefit
from a cross-dock solution:
Keep
up with the clicks. Consumer demand and competition from eCommerce sites such
as Amazon, Google and other Internet-based retailers has pushed traditional
brick-and-mortar retailers to up their game. For many, same day / next day
fulfillment for both in-store and online purchases is the new normal. This also
requires retailers keep store shelves stocked, while also keeping costs in
check. Pushing product closer to the storefront faster has become the
competitive mandate.
Match
consumer shopping habits. As consumers shop nights and especially weekends,
retailers need faster replenishment, without giving up valuable retail space.
Just-in-time restocking ensures product is on hand when consumers reach for it.
Tight
in-store inventory. Store-rooms don’t sell goods. Showrooms do. For years,
retailers have tried to push more inventory out front. Cross-docking allows
retailers to reduce the size of storerooms – and transform that floor space
into retail selling space.
Improve
inventory management and damage control. More frequent or just-in-time
replenishment allows retailers to break the case to allocate goods piecemeal or
at significantly lower quantities to store locations, as opposed to shipping
and storing entire boxes of merchandise. This also can reduce the likelihood of
damage to stored inventory
Accommodate
flexible delivery schedules. Some stores can’t take deliveries on certain days.
Others aren’t staffed to handle inbound loads. Smaller cross-docked loads can
often be scheduled to match individual store locations’ logistical or staffing
realities, with appointment windows as tight as one hour.
Cross-docking
brings inherent issues and risks, especially for those organizations that
haven’t considered it in the past. Cross-docking requires personnel skilled in
the coordination of inbound and outbound transportation, as well as the
specialized delivery equipment, including lift gates or conveyors, needed to
transfer goods.
Additionally,
some retail locations are not designed or equipped to safely accommodate the
increased traffic flow. Handled poorly, cross-docking could lead to increased
product damage, loss or safety risks.
Traditional
brick-and-mortar retailers that have not explored cross-docking in the past
should discuss the benefits of cross-docking with a 3PL provider with the right
facilities, processes, and personnel.
Expect
to see more cross-dock facilities emerge as retailers seek to compete with the
endless mall that is the Internet. Retailers, especially big-box stores, should
review the entire supply chain for opportunities to improve efficiencies as
they cross the final mile and get closer to their customers.
See more at:
http://blog.ryder.com/2015/06/5-reasons-cross-docking-changing-retail-warehousing/#sthash.z8e0nlBK.dpuf